TRO's profit drops by 3.7% amid internal investment

TRO's profit before tax fell 3.7% to £1.9m for the year ended 31 December 2014, down from £2m in the previous period.

TRO took out the Best Brand Experience - B2C gong at Event Awards 2015 in October
TRO took out the Best Brand Experience - B2C gong at Event Awards 2015 in October

Gross billing was recorded at £30.8m - a 3% decrease on the £31.8m achieved for year ended 31 December 2013, while rebillable costs stood at £20.2m, leaving a revenue figure of £10.6m, up 1.9% from £10.4m the previous year. 

Profit after tax declined from £1.6m in 2013 to £1.5m last year. The agency attributed the fall to its increased investment in both future growth and staff, as well as a higher management charge for the period, up from £398.3k in 2013 to £539.2k in 2014.

The financial report stated that throughout the period TRO invested in new talent, training and innovation, in a bid to ensure it remained leaders in its industry.

2014 was seen as a successful year for TRO, with the agency retaining two of its major clients on three-year contracts.

Keith O’Loughlin, chief executive at TRO stated in the financial report: "Brands have for some time procured advertising services on a regional basis to drive cost efficiency and brand continuity between markets. This strategy is now extending ‘below the line’ to include experiential and event marketing.

"We are increasingly receiving client briefs that require TRO to have expertise in multiple markets. In order to protect existing business and secure new opportunities, our European and Asian operations have continued to expand, opening offices in Amsterdam and Bangkok in 2014."

Michael Wyrley-Birch, COO, TRO EMEA added: "We are delighted to report a strong performance in 2014, achieving all key strategic objectives and a turnover in excess of £30million. 2014 was a year of re-securing major clients on three-year contracts – including Vauxhall’s events and experiential programme and the prestigious BMW PGA Championship which we delivered for the 11th consecutive year in May 2015.

"We were also proud to add new clients to the portfolio, in the form of British Airways, Porsche and Bupa and have delivered a number of high-profile events for each in 2015, including a unique behind the scenes British Airways brand experience for 13,000 guests and Porsche’s brand presence at Goodwood Festival of Speed."

Wyrley-Birch has been ranked no. 1 on the Event 100 Club 2016 list, and the agency took out the Best Brand Experience - B2C category at Event Awards 2015.

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